It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Charter Hall Social Infrastructure REIT's (ASX:CQE) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Charter Hall Social Infrastructure REIT Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chief Investment Officer & Executive Director of Charter Hall Social Infrastructure Limited Sean Thomas McMahon bought AU$215k worth of shares at a price of AU$3.66 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$3.50). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Charter Hall Social Infrastructure REIT insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Charter Hall Social Infrastructure REIT Insiders Bought Stock Recently
We saw some Charter Hall Social Infrastructure REIT insider buying shares in the last three months. Insiders purchased AU$51k worth of shares in that period. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 1.0% of Charter Hall Social Infrastructure REIT shares, worth about AU$13m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Charter Hall Social Infrastructure REIT Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Charter Hall Social Infrastructure REIT we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Charter Hall Social Infrastructure REIT. Our analysis shows 3 warning signs for Charter Hall Social Infrastructure REIT (2 are a bit unpleasant!) and we strongly recommend you look at them before investing.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.